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High earners to face tax on child benefit

J
oan Burton is planning to tax the child benefit payments of parents earning over €100,000.

In an interview with The Sunday Times last week, the social protection minister said she had asked an advisory group to examine how this might be done. “I think there’s scope for people who are in the happy position of having very high incomes, to make a contribution in terms of tax for child benefit,” Burton said.

“I don’t know if technically we’re at that point yet, but it’s certainly something that the advisory group has been in discussion with Revenue about.”

Burton’s plans would envisage taxing child benefit in a household where at least one parent is earning €100,000 or more. It would not be assessed on the basis of joint income. Sources said it is hoped the technical and legal problems around the taxation of such individuals will be resolved in time for